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Nothing could be more true when it comes to mortgage leads. When a (traditional) lender picks up the phone, they value it exactly as much as they've paid for it, which is of course, nothing. But what happens if the phone doesn't ring? Crossword puzzles or surfing the net? Either way, if they work for you, or if it is you, it's probably time to become positively involved.
Many companies rely heavily on web-based leads, "It's the lifeline of the business” said a branch manager for prominent mortgage company. “I spend a boatload of money every month on this, but it's OK, because the return is there." The bottom line is that because brokers pay money for these leads, they work them to death…and follow through. “There are so many different lead sources out there, and so many are bogus,” he added, sometimes it can seem like “like throwing away money." Internet or telemarketed leads account for 70 percent to 80 percent of his company's loans.
How do you protect yourself from the pitfalls of the marketplace?
Mortgage shopping over the Internet has become streamlined in recent years. Most leads don't turn into loans, but enough do to make the leads attractive. Research and really talking with the provider will usually let you know if they know their product.
Do they:
Some lead sources don't always tell prospective customers the full story on rates and fees. There are costs that might not be disclosed. Make sure you know if any additional charges are related to your purchase/delivery of leads. That includes the returns also.
Many lenders feel it's a lot easier for customers to determine the full cost of a mortgage if they sit down with a loan officer. But online lenders say the concerns are overstated. Indeed, customers who want face-to-face transactions usually get them. Service remains the most important part of any business. It's all about talking to people and finding out what their goals are.
Though online lenders say they offer better service, they also could be helping to drive down the costs of getting or refinancing a mortgage through comparison shopping.
A lead customer is a shopper now, not a buyer. You are more demanding. You know a competitive product when you see one. Finding a real person who can provide for your real daily needs in a cost effective fashion is the goal.
Story: Ed Rooney for Live With a Net© Publications. All rights reserved.
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